What if analysis?

What-if analysis is the method of changing the values in cells to make out how those changes will affect the ending of formulas on the worksheet.

Three kinds of what-if analysis tools get nearer with Excel: data tables, scenarios, and Goal Seek. Scenarios and data tables take sets of input values and find out possible results. A data table works only with one or two variables; however it can agree too many different values for those variables. A scenario can have multiple variables, however it can accommodate only up to 32 values. Goal Seek works in a different way from scenarios and data tables in that it takes a result and determines likely input values that produce that end result.

Besides these three tools, you can install add-ins that helps you carry out what-if analysis, like the Solver add-in. The Solver add-in is alike to Goal Seek, but it can accommodate more variables. You can as well create forecasts by using the fill handle and a variety of commands that are built into Excel. For more advanced models, you can make use of the Analysis Pack add-in.